Duty rates can be defined at the ledger or stock item level. Based on the requirement of the business, tariff and rate of duty can be defined either in the ledger or stock item master.
GoIndia is a company that supplies fuel to fuel stations. They sell petrol and diesel, both branded and unbranded. The rate of duty for each of their stock item is different. Hence, they prefer to define the tariff details in the stock item master.
In this scenario, tariff details can be defined at the stock item or ledger level.
To define the tariff and rate of duty at the stock item level
Go to Gateway of Tally > Inventory Info. > Stock Items > Create.
The Stock Item Creation screen is displayed.
Enter the stock item name.
Enable the option Set/Alter Excise Details in the Stock item creation screen.
The Excise Tariff Details screen is displayed.
Provide the tariff details in Excise Tariff Details screen.
Enter the Tariff Name and HSN Code.
Select the Reporting UOM and Valuation Type.
If the Valuation Type is selected as Valorem + Quantum:
Enter Rate of duty, for example, 14%.
Enter the Rate per Unit, for example, 15.
Press Enter to accept the Excise Tariff Details screen.
Accept the Stock Item Creation screen.
Similarly, tariff can be defined in the Ledger.
On selecting this stock item (created in the previous section), the tariff and rate of duty defined in it gets applied in the transaction.
The Tax Rate Setup tool is used to set excise tariff rates from the Excise Tariff Setup scree after migration of data from releases prior to 5.0 to Tally.ERP 9 release 5.1.
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